Skip to main content

Palm shares soar as analysts back Pre

Palm Pre
Palm's stock rises thanks to the Pre

Palm's stock has been steadily rising over the last few months, and has finally tipped the $10 per share mark after an analyst backed the company.

Merrill Lynch analyst Vivek Arya has changed the position on Palm to 'Buy', meaning that the financial woes, which deepened recently after the company released its financial results, look set to be behind it.

Arya believes the target for the firm should be $14 per share, which would mean the company's share price would be comparable to its position two years ago, before a drastic slide saw shares tumble to less than $2 per unit.

Soaring sales

The Pre's sales figures from the analyst, which are admittedly predicted and therefore not much more than an educated guess, are also encouraging, stating that the Pre will manage to force its way into the palms of 2.5 million in 2009, soaring to a whopping 6.5 million in 2010, which would mean it would be having a real crack at the iPhone's sales.

And this prediction comes based on one device from Palm; if the company can build on a successful operating platform in webOS (assuming it's not full of bugs) and release more phones that equal or better the Pre, then it could be full steam ahead for the Good Ship Palm.

Especially when Angelina Jolie and Playboy both endorse it too... that's enough to make most men buy it alone.

From Barrons via Precentral